Financial Decision Making

Running head: FINANCIAL DECISION MAKING
Financial Decision Making
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL DECISION MAKING
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Market Research and Commercial Viability...............................................................................3
Funding Sources..........................................................................................................................3
Relevant Income Streams............................................................................................................4
Proposed Cost Expenditure and Revenues..................................................................................4
Pricing Strategy...........................................................................................................................5
Appropriate Financing Sources...................................................................................................5
Financial Outcome.......................................................................................................................5
Breakeven Point...........................................................................................................................6
Recommendations and Conclusion..................................................................................................6
References........................................................................................................................................8
Appendix........................................................................................................................................10
1) Profit and Loss Statement..........................................................................................................10
2) Balance Sheet............................................................................................................................11

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Introduction
The report will be conducting an overall financial review for the event that will be
conducted by the NSYNC Band that will be performing in London. The new start-up company
named Austin Entertainment Group would solely handle the event. The name of the concert
would be namely NSYNC Return concert in London. NSYNC is a famous American Boy Band
formed in Orlando, Florida in the year 1995, which was primarily launched in Germany by BMG
Ariola Munich. The key member of the group are Justin Timberlake, JC Chasez, Lance Bass,
Chris Kirkpatrick & Joey Fatone. The key Genres that the band performs is the Pop music,
Dance Pop, Contemporary R&B and Teen Pop (Gardner 2016). The American Band will be
performing up in the O2 Arena, which is an indoor stadium that serves as a multi-purpose indoor
arena located in the centre of the O2 entertainment complex of the Greenwich Island. The arena
opened in the year 2007 and conducts various types of events, as the place is a home to world’s
most popular music, sport, comedy and many other. The O2 arena can host conference events
thereby accommodating 1,500 guest to 15,000 guest. The event will be taking place in the month
of 18th August 2019 and the same is decided according to the availability of the stars and due to
weekend where the expected number of turn-outs will be maximum (Chang 2016). The area
gives a proper separate place for the VIP and are perfectly suited for Breakouts, Catering and
various networking spaces that will be carried out by the company. It is important that the
financial manager of the company assess the effectiveness of the event that will be conducted. In
order to evaluate the financial viability it is important at the same time to review the popular
bands or the craze that the people will give towards the return of NSYNC Band. Costs, Effort
and Goodwill of the Company is all involved when conducting or organising such an event and it

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is important that the financial sustainability of the same is proved with the financial projections
that will be made for the company.
Discussion
Market Research and Commercial Viability
In order to assess the financial viability of the event it is important an adequate amount of
effort spent in conducting data and ideas about the effectiveness of such an event. Since, the year
2002, when the NSYNC split there were major new bands such as Linkin Park, Metallica, One
Direction and Twenty One Pilots were some of the common band that have outperformed in the
recent years (Horning 2018). Commercial Viability of the financial event can be well tested out
for the company with the help of financials forecasted for the company. The level of profitability
and the amount of expenses can be well stated in the financials and accordingly the budget for
the event can be well planned by the management of the company. The accommodation number
for the guest is set up at 15,000 guest however on the other hand differences in the ticket sold can
be of much significance for the company (Kepczynski et al., 2018).
Funding Sources
Funding of the event would be done based on equity and debt finance whereby the
company will be maintaining an adequate source for both the financing sources. Equity financing
would be the key sources of financing comprising about 50% and the rest of finance would be
coming from debt sources that would be giving around 50%. It is estimated that around $2.5
million would be required in the initial start-up capital for the firm for conducting the event for
the company (McKeever 2016).